Peer-to-peer lending companies, such as Prosper and Lending Club, must comply with regulations regarding commercial lending in each state that they operate in. For this reason, Lending Club and Prosper don’t operate in all 50 states yet, but they do operate in quite a few.
Lenders in these states can become lenders on Prosper.com: California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Louisiana, Maine, Minnesota, Missouri, Montana, Nevada, New Hampshire, New York, Oregon, Rhode Island, South Carolina, South Dakota, Utah, Virginia, Washington, Wisconsin and Wyoming.
Lenders in these states can become lenders on Lending Club: California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kentucky, Louisiana, Maine, Minnesota, Missouri, Mississippi, Montana, New Hampshire, Nevada, New York, Rhode Island, South Carolina, South Dakota, Utah, Virginia, Washington, Wisconsin, West Virginia, and Wyoming.
Lending Club does allow lenders in other states, with the exceptions of D.C., Kansas, Maryland, Ohio, Oregon, Texas and Vermont, to purchase Lending Club notes on its trading platform that’s powered by FOLIOfn.
You’ll probably notice that the two lists of states that each company operates in are very similar. This is because both Lending Club and Prosper have met legal guidelines in states that have less stringent regulations regarding commercial lending. The states that neither company operates in have a more stringent regulatory environment in commercial lending.
Both companies are always working to expand their customer base by expanding into new states, so if your state isn’t listed, it’s worth checking back in a few months to see if either company has made a new addition.